Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.
Please note: High-cost short-term credit is unsuitable for sustained borrowing over long periods and would be expensive as a means of longer-term borrowing.
Short term loans can help you make ends meet, but it’s important that you make sure you’re using a legitimate lender. Use the table below to compare loans from recognised, regulated payday lenders.
Times can be tough, but that doesn’t mean you should settle for just any short term loan you can find. A legit payday loan is one that is offered to you legally. The lender needs to abide by the regulations set by the Financial Conduct Authority (FCA). Short term loans can be applied for online and in store but fall under the same regulations.
Generally, short term lenders have more relaxed eligibility criteria than banks and other lenders. You’ll be able to apply for a short term loan if you have bad credit, are on a lower income or receive government benefits. However, the relaxed eligibility criteria do mean rates and fees are higher than other loans.
Lenders still have to stick to the rules set by the FCA – including a cap on the daily interest and one off fees they can charge you.
Lenders must make a reasonable judgment on an applicant’s ability to repay the loan. The lender should assess factors such as income, housing expenses and existing debt in determining if the applicant can reasonably repay the loan.
If a lender doesn’t ask you for any of that information or doesn’t attempt to evaluate if you can afford the loan, the lender probably isn’t legit. Since there are plenty of lenders that check, you should move on and find one that combines good terms with a strong lending ethic.
You should keep the following in mind when looking to find legitimate lenders:
Whether you’ve decided on a payday loan or an instalment loan, you may face a bigger expense than you initially expected. Short term loans are designed to be repaid quickly. If you’re unable to pay on the due date, you’ll be charged more fees and extra interest, which can quickly increase the total cost of your loan.
As with every lending option, always be sure you can repay what you borrow.
Take some time to go through the loan’s terms and conditions, as this document tells you how much you may have to pay in different circumstances such as rollovers and late payments.
You’ll also have to pay additional fees if you make a late payment, and your lender will report your missed payments to credit bureaus. Reconsider applying if you think you may have trouble repaying your borrowed funds.
Don knows how costly payday loans can be, but after receiving a large bill from the vet, he realises he has no other choice but to take one out. Rather than applying with the first one he finds, Don chooses to compare different lenders.
He checks the FCA regulations and finds that some are offering much more than they're legally allowed. Others claim that they don't conduct credit checks or have guaranteed acceptance.
Don passes over these and instead picks a lender that clearly outlines its fees and has a good customer service line. He borrows £200 and works the extra cost into his budget for the next month.
* This is a fictional, but realistic, example.
Knowing what to look for in a legit lender is just as important as understanding common scams. Once you’ve checked government regulations, know how much you need to borrow and have an idea how to repay, start comparing your options to be sure you’re getting a good deal.
Credio was a popular source of short-term credit online until the lender stopped issuing loans in 2018.
Looking for loans like Cashasap? Check out our list of UK lenders offering similar payday loans and services to Cashasap.
Had a payday/short-term loan application declined? Wondering why? We take you through the top reasons payday lenders say “no” plus what to do next.
If you’re experiencing a financial shortfall, you might be considering a six-month loan. Use our guide to compare loan rates and overall costs from a range of lenders, and to learn more about how short-term loans work.
Looking for sites offering similar loans to Cashfloat’s? Browse popular short-term lenders offering a comparable service. Compare rates, fees, eligibility and estimate the total cost of borrowing.
Experiencing unexpected costs and considering a £1,000 short-term loan? Use our in-depth guide to compare rates between lenders and to get a fast and simple estimate of costs.
Sometimes unexpected costs pop up and leave us temporarily short of cash. If you need a helping hand for three months then you might be considering a short-term/payday loan. Use our guide to compare rates and total costs of borrowing from a range of UK lenders and to find out more about how short-term loans work.
It’s not always possible to see what costs are around the corner. If you’ve found yourself £300 short then you might be considering a payday/short-term loan. Use our guide to learn more about payday loans, to compare lenders and to calculate the cost of a £300 loan.
Need £100 to cover an unexpected shortfall? Before taking out a payday/short-term loan it’s smart to compare rates from a range of lenders. Use our fast and simple repayment calculation and learn more about short-term loans.
Why not repay your payday loan early if you can? Find lenders that let you close your loan early without charging you a penalty or fee.
